SEC Requires Landlines for Online Lending Platforms

The Securities and Exchange Commission (SEC) has issued an order requiring all financing and lending companies that operate online lending platforms or applications to establish landline numbers or telephone lines for their main offices and branches. These companies must submit proof of billing statements for these landlines via E-Fast using their verified MC 28 email within 15 days of the order’s release. If a company is unable to comply within the 15-day period, they must submit an affidavit signed by their President stating that an application for a landline has been made, along with proof of said application. Proof of installation must then be submitted within three days of the telephone line’s installation. The order also stipulates that if offices are transferred or existing accounts corrected, the same process applies.

 

Failure to submit or late submission will result in penalties under the Financing Company Act of 1998 (FCA) or the Lending Company Regulation Act of 2007 (LCRA).

 

Submitting false, inaccurate, misleading, or incomplete information will also be considered non-compliance and will be penalized, potentially including the suspension or revocation of the Certificate of Authority to Operate.

 

This order can be found here.